Company news in brief
Profit feather in Rainbow’s capRainbow Chicken owner RCL Foods has provided updated guidance on its profit rise for its six months to end-December.After guiding a rise of at least 30%, the company said in expects an increase in a range of between 41% and 45.9%.
The group, which is controlled by Johann Rupert’s Remgro, said previously that profits have benefitted from a turnaround in its poultry business as well as higher sugar prices.
The company has also been boosted by the sale of its Vector Logistics segment, which is now listed as a discontinued operation, and insurance proceeds related to a fire at its Komatipoort sugar warehouse in late 2021.
RCL, valued at about R8.5 billion on the JSE, has gained about 10% in the year to date. It has still fallen almost 18% in the past year. – Fin24Grindrod expects higher HEPS
Logistics group Grindrod flagged an increase in headline earnings per share for between 15% and 20% for its year to end-December.
Continuing operations could see HEPS increase by 39%, the company said in a brief statement.
Grindrod has been pushing to become a solely logistics-focused group, and it had sold Grindrod Bank in 2022, but it didn’t go into details on its performance on Tuesday.
Its shares have gained about 22% in the past 12 months. – Fin24
Redefine maintains earnings guidanceProperty group Redefine said in a pre-close update that it is pleased to maintain its earnings guidance DIPS range of between 48c and 52c for its six months to end-December in a challenging operating context.
Despite a challenging macroeconomic backdrop, operating metrics across the board are showing improvement, it said, with CFO Ntobeko Nyawo saying in a statement that positive operational metrics across the company’s South Africa portfolio have supported organic growth and delivered a consistent operating profit margin of 78%.
“Market recovery and demand for A- and P-grade office space in South Africa continues in select nodes. As a result, office rentals are gradually recovering on the back of improved activity in key nodes like Sandton,” COO Leon Kok said.
“The effect of increased asking rentals is being monitored to ensure that Redefine’s rental rates remain competitive in the sector.”
Redefine has gained almost 8% in the past year.
– Fin24
Super Group blasts govtSuper Group says it’s seen no major improvements in South Africa’s ports and borders, adding it is “diabolical” how strategic assets such as the Richards Bay coal line have been allowed to be disrupted by criminal elements and breakdowns.
The JSE-listed logistics, fleet management and dealership company on Tuesday laid the blame for the state of affairs of the feet of the government, with CEO Peter Mountford saying the Richard Bay line is a national asset that “should be protected at all costs”.
Speaking after the release of results for the six months to end December, Mountford said it had been well known for years that the Richard Bay line made all of Transnet’s profits; yet, a deterioration had been allowed, which he described as “diabolical.” As a result, South Africa was losing out significantly on exports.
Super Group, valued at about R9 billion on the JSE, reported that its headline earnings fell about 17% to R676 million in the six months to end-December, but revenue rose almost 12% to R33 billion.
Revenue was supported by a weaker rand and the contribution of acquisitions such as UK-based AMCO and a South African retail delivery specialist, Right Side Up.
Net finance costs meanwhile surged 41% to R621.5 million amid the acquisitions and higher borrowing costs. – Fin24